Common Leasing Questions

What is the interest rate on a lease?

The amounts charged on an equipment lease are calculated using monthly "rental rates", rather than by using a compound interest rate method that is normally associated with conventional loans. Rental rates are based on the lessor's ability to effectively manage risk and costs associated with equipment ownership, while passing on the economic savings to the lessee.

May the equipment be returned at anytime?

No, the lease is non-cancelable agreement for a specified term that your customer selects at the beginning of the lease. Leases are available for terms ranging from 12 to 120 months (depending on equipment type), and can be upgraded or added on.

What are the options at the end of the lease?

The end user/lessee may purchase the equipment for its then fair market value (or such other amount if previously agreed to in writing by IFC Credit), continue to lease, or return the equipment with no further obligation.

Who is responsible for taxes?

Because this is a "net" lease, end user/lessee is responsible for taxes. IFC Credit is required by law to collect all applicable sales, use and property taxes and remit them to each state.

Who insures the equipment?

The Lessee is responsible for insuring the equipment against risk of loss including property and casualty coverage and liability. Lessees typically just add the equipment to their existing policy, however, insurance may also be available through the Lessor.

Does it cost anything to apply for a lease?

No, unlike many lending institutions there is no application fee.

Who provides warranty coverage on the equipment?

IFC Credit passes through all manufacturer warranty coverage to the lessee. Warranty claims are processed for the lessee in the same way they would be if the lessee were the owner of the equipment.

May non-equipment items such as software and maintenance be included?

Yes. One of the many benefits of leasing includes the ability to "bundle" a number of equipment items into a lease including software, service and support costs. This way, a lessee can make one, simple monthly payment for an entire system or equipment line.